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Loan of the Week – Next Generation

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Heading Into Our Next Generation of Lending

With over 3 decades in the business of alternative financing, we are one of the few Hard Money companies capable of lending in these uncertain times.  We continue to offer our services to those in need.  Below is just one of the many ways we can be of help, with our unique Alt-A Hard Money loan program.

Loan of the Week

Recently one of our brokers had a client who needed some fast funding.  He had to resolve some critical issues prior to building on one of his properties; There were permitting fees and road work that needed to be done and done quickly.

With an LTV of 53%, this loan of $750,00 was an easy one for us.

Even though this borrower would have qualified for a conventional loan, our Alt-A loan program was a better solution for him.  This program allows borrowers who don’t quite qualify for a conventional loan or who need a quick close, to access the financing they need without the usual lengthy process.  In addition, the interest rate on these loans is significantly lower than other hard money loan programs.

In 9 days, this Borrower was closing escrow and was able to secure all the necessary permits to begin work on his property!

If you are just shy of qualifying for a conventional loan, or need a fast close, give us a call at 707-523-2099.  We look forward to letting you know what we can do for you.

Hard Money From The Right Agents!

Hard Money From The Right Agents

“My loan payoff with another lender is due in 3 weeks, but I need just a few more months to qualify for a conventional loan. Can you help me get a fast refinance?”

This borrower needed a temporary loan of $525,000 for a property in San Diego. Our Hard Money programs have no problem with performing quickly.  In just 10 days the old loan was paid off and the borrower was calmly working with his conventional lender towards qualifying for a long-term loan!

Call us at 707-523-2099 with any scenario or question you have.  Let us show you we are the right Hard Money agents for you and your clients!

Hometown Superheroes Bulletin #2

LET’S GET BACK TO DOING THE USUAL

NOTE:  Please share with us any heroes you have personally observed, been thankful for or have been inspired by.  We will then share it with everyone.

Super Hero Alert:

● David Reyes, his son Luis Reyes (property owners and customers of ours from Hayward, CA) just personally bought and delivered 40 whole chicken dinners, 12 pizzas to the SR Veterans building for those that need it!!!!  Super Heroes!!!!

● Yesterday we started making an effort to Do the Usual.  Get the loans done!  Lo and behold the County Recorder opened their doors and started recording transactions yesterday! We were able to record a local transaction that HAD to be done by Friday.  We all came in early this morning and just received a delivery of a closing check. Pays to be early!  We expect several others by Friday!!!!  We’re feeling a little more normal.

● Tracy Escher at First American Title in Sebastopol is the only one manning that office!  She’s working her tush off – she’s a machine!  And getting it done!!  Thank You Tracy!!

● Adel’s Restaurant on the corner of Mendocino Ave and College:  Forest drove around for 40 minutes looking for a breakfast place.  He happened by Adel’s which was open at 6:15am!  A welcome sight.  They weren’t open the day before,  but gathered their group,  and are now open at 6:00 am and closing LATE.  They have 2 cooks and 3 waiters and 1 clean-up person.

● A clerk at Target, as we were checking out some clothes for the grandkids, listened to our granddaughter tell her story of losing her house and immediately asked another clerk helping to “go and get 2 pumpkins”.  They gave the kids 2 large pumpkins so they had something for Halloween.  It was sooooo lovely and cute.  There were a lot of workers at Target the day the fires struck Santa Rosa!!  So surprising.  Starbucks at Target was also buzzing with business.

● Looks like a lot of the big stores are allowing RVs to park and stay.  Very nice!

Skillful Summer Success

surfingken

Owner Occupied Bridge/Temporary Loan
San Juan Capistrano, California

A Realtor called me regarding a home loan that her client was having difficulty getting approved. The buyer wanted to purchase a new home in Orange County and needed a jumbo loan of $875K.  Partially using equity from his existing house, he was coming in with 50% of the purchase price, made good income and had good credit.  The property was under construction and, therefore, did not qualify for other loan programs.

This is where I came in with our Hard Money lending.  This type of loan is not a disqualification or a turn-off for any of our private investors.  The home buyer intended to complete the construction and would refinance once it qualified for traditional financing.

With such a positive loan to value and the Borrower’s other great qualifications, I had this loan approved and funded in no time.  Both the Realtor and buyer were extremely happy when this transaction closed in under 3 weeks!

If you or someone you know is having difficulty with loan approval for a purchase or even a refinance, call me at 707-523-2099.  I would be more than happy to let you know how we can help with a Hard Money loan.

The Holidays Are Here…5 Reasons To Buy AND Sell Real Estate Now.

housepresent

With the Holiday rapidly approaching, home buyers and sellers tend to decide to take a break.  This is the exact wrong time to stop house hunting or house selling!

For home buyers looking to buy their first home or move up home, house prices are projected to increase. If you wait, you will end up paying more for your home, meaning higher monthly mortgage payments.

For all the homeowners who have been unable to sell over the last few years due to negative equity situation, there has been a return of positive equity in real estate, with values increasing over the past two years.  Many of these homeowners will be coming to the market soon and you don’t want wait for all this inventory of homes to come on the market before you sell.

An article from The KCM Crew, Winter Is Coming…5 Reasons to Sell Now, details 5 specific reasons why the Holiday is a good time to sell a house or buy a home:

1. Demand Is Strong

2. There Is Less Competition Now

3. The Process Will Be Quicker

4. There Will Never Be a Better Time to Move Up

5. It’s Time to Move On with Your Life

Another article, this one from Pacific Union Bay Area Real Estate Blog, Bay Area Homes Are Selling Faster Than Anywhere Else, mentions why now is not the time to slow down:

SAN FRANCISCO, SAN JOSE ARE THE NATION’S QUICKEST-PACED HOUSING MARKETS.
“The Bay Area’s well-documented inventory crunch is ensuring that serious homebuyers waste little time making deals this fall, with the San Francisco and San Jose metro area housing markets moving at the fastest pace in the nation…Bay Area homes are selling more than twice as fast as they do nationwide — 35 days in San Francisco and 37 days in San Jose. And in certain local submarkets, the pace of sales is even quicker. MLS data from Pacific Union’s October Real Estate Report shows that single-family homes in our East Bay region sold in an average of 17 days.”

Any desire to live in the Bay Area must be met with fast action before the real estate is snatched up!  If you are having difficulty with loan approval, don’t hesitate to reach our to us at Sun Pacific Mortgage and Real Estate.  We are family owned and operated and have been California’s Hard Money Lender Since 1988.

We would be happy to help get you a new home for the Holidays!

 

 

Read full article here:

Pacific Union: http://blog.pacificunion.com/real-estate-roundup-bay-area-homes-are-selling-faster-than-anywhere-else/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pacunionblog+%28Pacific+Union+Blog%29

The KCM Crew: http://www.keepingcurrentmatters.com/2016/11/21/winter-is-coming-5-reasons-to-sell-now/?utm_campaign=Blog_Promo&utm_medium=email&utm_source=email-automated&utm_content=DailyBlogSubscription&utm_term=BlogPost

 

Local & Creative Financing For Real Estate

“I am truly in awe of you your company! Yet again another seemingly seamless (I know you are working hard to make it seamless) process thanks to the systems that you have in place! Always a pleasure!”

“I commend you on another transaction and I will continue to refer you guys as I have on several occasions this past year! Much appreciation to you and your team! All the best, S.M.”

Hard Money Provides …

  • A Quick Close
  • Multiple Options
  • Shorter term loan
  • Makes an impossible deal possible

See some recently funded loans below, to get a better idea of how we can help you, your clients, your family and friends!

Call Us today at (707) 523-2099.

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Best,
Ken and Forest, The Guys in the White Hats

P.S. We love Referrals!

Recently Funded:

Santa Rosa, CA (Sonoma County)

Loan Type: Refinance Owner Occupied 2nd
Amount: $150,000
Days to fund: 23 days
Reason for Hard Money: Debt consolidation

Sonoma, CA (Sonoma County)

Loan Type: Owner Occupied Business Purchase
Amount: $200,000
Days to fund: 9 days!
Reason for Hard Money: Credit was poor

Sebastopol, CA (Sonoma County)

Loan Type: Owner Occupied Purchase Bridge Loan
Amount: $562,000
Days to fund: 10 days!
Reason for Hard Money: Still had foreclosure reported on credit

Windsor, CA (Sonoma County)

Loan Type: Owner Occupied Hybrid – 15 year loan with 3 years interest only and then amortized for 12 years
Amount: $440,000
Days to fund: 15 days
Reason for Hard Money: Difficult to prove income

Mill Valley, CA (Marin County)

Loan Type: Investment Property Refinance
Amount: $240,000
Days to fund: 8 days!
Reason for Hard Money: Property needed fix-up

Elk Grove, CA (Sacramento County)

Loan Type: Owner Occupied Refinance
Amount: $260,000
Days to fund: 20 days
Reason for Hard Money: Low credit scores

Click this link for our rate sheet, showing the programs we offer.

NOTE: Get our financing despite bad credit, difficult to prove income, property a fixer, etc! We finance Jumbo loans, Bridge and short term loans, Owner Occupied purchases and refinances, investment purchases , commercial and land.

CALL TODAY, The Guys In The White Hats at
(707) 523-2099

California Housing Market Headed in Right Direction

In April, California Association of Realtors released their 1st quarter California Housing Market Update citing a number of interesting updates.

C.A.R. President Pat “Ziggy” Zicarelli was quoted as saying:

California’s housing market is moving in the right direction as we enter the spring home-buying season, but sales growth will likely be isolated in areas where inventory is more abundant and housing affordability is less of an issue.”

Taking a look at the the data C.A.R released, it’s interesting to note certain counties with sharp upticks in sales:

County April Median Sold Price March Median Sold Price MTM% Change
Tehama $193,330 $175,000 81.8%
Amador $307,890 $267,860 77.4%
Plumas $231,250 $266,670 75.0%
Tuolumne $239,710 $272,500 71.8%
Napa $666,670 $664,470 70.9%
Merced $189,500 $197,780 70.8%
Santa Barbara $596,770 $729,170 63.8%
Alameda $762,570 $712,990 61.5%
Ventura $620,020 $610,820 61.3%
Yolo $374,000 $387,930 59.6%

 

Of the top 10 counties in California with MTM% changes, we can see a nice spread of housing sold in potential up and coming areas. With Tehama, Amador, Plumas, and Tuolumne Counties all located in Northern California, it would seem affordable housing under $300k is becoming more abundant and selling well. We can  also see  affluent areas like Napa, Santa Barbara, Ventura, and Alameda all maintaining solid home sales in areas with much larger home prices and a steadier inventory.

housemarket

As a Hard Money Broker in Northern California for over 28 years, Sun Pacific Mortgage & Real Estate will always be there if you are looking for creative or alternative financing for real estate, anywhere in California.

We specialize in financing investment home purchases and refinances – single and multiple units. We are very much able to fund or refinance Bridge Loans, many owner occupied or principal residence purchases and some commercial purchases.

Give us a call at (707) 523-2099 if you are considering private financing with your next home purchase!

Owner Occupied Principal Residence – Part 1 of 2

oo 1 This will be the first in a series of articles that will explore the varied types of loans we offer Investors.

Let me start off by saying that I will always do loans to homeowners that are owner occupants. It is an important segment of lending and a heck of a niche for my office. It also has the most regulation by the state and feds who, in their infinite wisdom, have decided that this category of homeowner needs protection. Lots and lots of protection.

I will also tell you that there has not been a foreclosure of an owner occupied loan (that I am aware of) for the last 6 years. This is key.

These are generally very good loans. Most are just shy of getting 30 year fixed rate loans at or under 4% from what we call “A” paper lenders like Wells Fargo, Chase or B of A. Most are turned down due to something in their credit. Second most are turned down due to income. Problem property is the third reason. All the turned down loans that we write have down payments of between 20% and 60%.

Many mortgage brokers have backed off of this type of loan. My guess is they have been run off by the profusion and confusion of regulations. The tragedy is, they have run a lot of investors off of this type of loan. And really, it’s not that tough to know the regulations and comply. Yeah, there has been a lot of regulation, but my viewpoint is that you get your wits around all of it and simply comply with the fed and state mandates and you do these loans. So that’s what I do and that’s why I promote this type of loan.

Almost all of the owner occupied loans that we write have an “exit strategy”. We never used that term before the proliferation of fed and state regulations in response to the recession, but here it is. We write these loans as 15 years loans but I would wager none will go to that term. I looked at the statistics of the owner occupied loans we have written that are serviced and the ones that had paid off lasted an average of 11 months. So we make 15 year loans but they most likely will not last that long. And if they do, hallelujah!

champagne-cork

One thing I must mention that I think increases the security of those loans, is the fact that the feds require they be impounded for the payment of property taxes and insurance. The feds did get that one right. You know every month that those items are paid and not accumulating.

The feds also require that the Borrower on an owner occupied loan demonstrates an “ability to repay” the loan. We don’t even write the loans if they cannot prove they can repay the loan. We turn down quite a few requests, even with a ton of equity, because they cannot prove their income.

Last item to mention is that the feds mandate these Borrowers do a consumer credit counseling class before the loan records. The counselor takes the disclosures for the loan and does a budget talk with the borrower. It’s done over the phone and takes about 45 minutes to an hour. This theoretically makes for a more informed Borrower. Makes sense to me.

informed-borrower

So, statistically, owner occupied loans don’t get foreclosed upon, the loan to values are good, they have an ability to repay the loan, they have an exit strategy, they pay the property taxes and insurance monthly, they do a consumer credit counseling class and the properties will likely appreciate in the coming months and years.

That’s why these loans are a great investment.

To continue reading on to Part 2, click here!

Can Fixing & Flipping Be More Beneficial Or Harmful For You?

We all want to make money… it pays our bills, allows us to buy things we want and helps us more comfortably survive. So of course, when someone sees how “easy” it is to buy and flip a home for profit on TV, they want to try a slice of that cake to say they have tasted it’s sweet victory.

pablo (2)Most people don’t like trying and then failing. But what happens when you try “doing what everyone else is doing” and don’t get the results expected? You could throw up your white flag and be done with it, or, you can isolate what the problem was in the first place and try again.  

Here are some aspects to have in place before you get started on any rehab type project, covered in more detail by this INVESTOPEDIA article, Top 5 Must-Haves For Flipping Houses: http://www.investopedia.com/articles/pf/07/flippers.asp

  • A Group of Experts
  • A Handyman or Knack for Home Improvement
  • A Good Lay of the Land
  • A Good Estimator
  • A Dose of Patience


With the correct value give to these points above, you success and profits could be greatly affected.

In the end, is it more beneficial or harmful for you to fix & flip a home?  That depends on if you like taking risks to accomplish your goals. As I’ve heard before, “Successful people take big risks knowing they might fall hard. But they might succeed more than they ever dreamed.”

Are you looking to invest in a rehab project but still need financing? If your favorite bank has turned you down, give Ken Walker of Sun Pacific Mortgage & Real Estate a call! (707) 523-2099

 

Private Lending Filling the Mortgage Gap

With Real Estate prices rebounding in California, it’s surprising to see banks still being cautious and lean only toward wealthier, lower-risk borrowers. This has left a widening gap in the mortgage industry between Lenders and potential Borrowers with less than perfect qualifications.  Mortgages in the U.S. last year totaled about 1.6 trillion, according to the Mortgage Bankers Association. On a scale like that, Private Lending trails closely behind, with demand growing every year.

Middleman (1)These days, Borrowers typically only need one or more flaws in their qualifications to be denied traditional lending. This can be a huge disappointment to Borrowers who otherwise have fantastic qualifications and are in great need of help.

A perfect example can be found in a recent Wall Street Journal article posted here: http://www.wsj.com/articles/private-lenders-remodel-the-mortgage-market-1462984898

“Ms. Lewis is an executive director of Los Angeles County’s Mental Health Commission. She has over 22 years of equity in her home with an estimate worth of $600,000. A recent divorce and subsequent bankruptcy has ruined her credit and caused loan rejections from every bank she approached.”

As an experienced, longtime Private Money Broker operating in Sonoma County California, Sun Pacific Mortgage & Real Estate could approve her loan based strictly on her job status, steady income, and available equity. Her recent bankruptcy would not affect her qualification in this scenario.

Have you been turned down for a loan due to less than perfect qualifications? Call Sun Pacific Mortgage & Real Estate today! (707) 523-2099

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